Organizations of all types (e.g., corporations, non-profit groups, academic institutions, households, individuals, trusts, estates, and/or other entities) and individuals associated with these organizations are typically required to complete financial forms. In some cases, these financial forms are completed on an infrequent basis (e.g., once during the life of the organization). In other cases, these financial forms are completed on a frequent basis (e.g., annually, semi-annually, quarterly, and/or other periods of time).
Financial forms are often used to report financial events to a financial body (e.g., a tax authority). Financial forms may be any number of pages long and may be divided into multiple sections, with each section pertaining to one or more financial events. In many cases, financial forms may also be used to determine additional payments and/or credits that result from the reported financial events (e.g., tax bill, tax refund, etc.).
The payment of a tax is an example of a financial event that may be reported by one or more financial forms. A tax is a fee charged (i.e., levied) by a governing body (e.g., municipal government, state government, federal government, etc.) on a product, income, or activity to finance expenditures. Many different types of taxes exist, including sales taxes, luxury taxes, income taxes, alcohol taxes, etc. When a tax is levied directly on personal or corporate income, said tax is referred to as a direct tax. When a tax is levied on the price of a product or service, said tax is referred to as a indirect tax.